The Empirical Research Of The Influence Of Social Relationship On Enterprise Performance

With the continuous development of China’s economy and the transformation to the market institution, the rapid revolution of economy, society and legal system brought serious challenges to managers. In this case, the social relationship is considered to be an effective strategy to help enterprises to improve operating efficiency. However, existing research about the impact of social relationships on the performance has many shortcomings. First of all, the empirical results about impact of political relationship on business performance have inconsistent results. Second, the phase characteristics of the transition economy and China’s regional development imbalance led to large differences in the characteristics of institution, the impact of social relationships on enterprise performance will change along with the difference of institutional characteristics, but previous literatures are rarely involved in this aspect of the research. Finally, explanation mechanism about the relationship effect lack of pertinence.In this paper, based on the theory of relationship governance, dividing the social relationship into political relationship and business relationship, use the legality and collectivist culture mechanism to explain the influence of different dimensions of social relationships on the performance. And on the basis of institutional theory, choosing the law enforcement efficiency and market competition norm as the institutional characteristic of transition economy, researching how the difference of the transition economy institutional characteristics moderate the impact of social relationships on enterprise performance.Choosing the high-tech private enterprises as an empirical framework, using SPSS and LISERAL software for data analysis, the results show that political relationship has positive effects on enterprise performance when the degree of law enforcement efficiency and market competition norm are both on a low level, while political relationship has a negative influence on enterprise performance when the degree of law enforcement efficiency and market competition norm are both on a high level. At the same time, we also found that when market competition norm at a low level, business relationship has a positive influence on enterprise performance, and when the norm of market competition at a high level, the positive impact of business relationship on enterprise performance will increase.Research of this paper not only makes up for the blank of the governance theory and institutional theory, and make China’s private enterprises managers understand that how the difference of transition economy institution moderates the influence of political relationship and business relationship on enterprise performance, especially understand the difference that arise from different stages of transition economy and China regional institutional differences of the influence of social relationship on enterprise performance, thus have a definite object in view when applying relations strategy, and bring a better performance for enterprise.